The First Court of Appeals of Texas has affirmed a trial court's decision that a trustee has authority to enter into a lease that includes terms extending beyond the termination of the trust. In Myrick v. Moody National Bank, trust beneficiaries challenged a trustee's authority to enter into a lease extending beyond the termination of the trust.
Affirming the trial court's decision, the First Court of Appeals reasoned that under Texas Property Code Section 113 trustees are given broad powers, which include executing leases that extend beyond the termination of the trust, and may exercise any power necessary to carry out the purpose of the trust unless the terms of the trust expressly limit the trustee's power.
See Myrick v. Moody Nat'l Bank, 336 S.W.3d 795 (Tex. App. 2011).
HAT TIP: Wills, Trusts and Estates Prof Blog
Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.
Affirming the trial court's decision, the First Court of Appeals reasoned that under Texas Property Code Section 113 trustees are given broad powers, which include executing leases that extend beyond the termination of the trust, and may exercise any power necessary to carry out the purpose of the trust unless the terms of the trust expressly limit the trustee's power.
See Myrick v. Moody Nat'l Bank, 336 S.W.3d 795 (Tex. App. 2011).
HAT TIP: Wills, Trusts and Estates Prof Blog
Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.
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